(Reuters) – Atlanta Federal Reserve Bank President Raphael Bostic said on Thursday the U.S. economy is “solid” and the central bank should hold interest rates stable and review economic data before making further policy adjustments.
Bostic said there are some signs the U.S. labor market may be a “bit beyond full employment” as he shared stories of employers struggling to find workers, in remarks prepared for delivery at an event organized by the Money Marketeers of New York University. He said current monetary policy is “accommodative.”
“I do think that the economy today is on solid footing and is likely to remain so,” Bostic said in his remarks. “I am fairly comfortable standing pat with policy and strongly favor weighing the incoming data, both macro and micro, over the coming months before deciding on any further adjustments.”
Fed officials voted last week to lower the benchmark interest rate for the third time this year. Fed Chairman Jerome Powell and other policymakers characterized the rate reduction as the last of the central bank’s “insurance” cuts.
The Fed’s target rate is now at a range of 1.50% to 1.75%. Bostic does not vote in monetary policy decisions this year, though he participates in policy discussions, and he will become a voting member in 2021.
(Reporting by Jonnelle Marte; Editing by Leslie Adler)
